Kakao Entertainment plots global expansion via the US, strikes partnership with Sony’s Columbia Records

Korea-based music companies will have a big impact on the US industry in 2023 (even more than they already have).

Bang Si-Hyuk President of HYBE, the company behind BTS speak CNN last week that he is “taking over the management companies and brands in the US so he can build [our] infrastructure” and pointed to Latin music and afrobeats as two areas that are “growing very fast”.

Also, HYBE America (now run by Scooter Braun) announced last month buy born in Atlanta Quality control with an amount of about 300 million dollars (pHYBE was buy Scooter Braun’s Ithaca Holdings for over $1 billion by 2021).

Meanwhile, HYBE’s rival is SM Entertainment, the management company recently fought HYBE’s takeover attempt, also expansion plan globally through the United States by acquisition and recently disclosed in an investor’s filing that it plans to spend ≈150 million USD to purchase one or more labels in the United States.

Now, K-pop company Kakao Entertainment, the entertainment arm of Kakao Corp, which is currently bidding for a majority stake in SM, has revealed its own expansion plans in the US and globally.

Kakao collaborated with Music Sony‘S Columbia Profile through the Kakao Entertainment America division, starting with the “global management” of one of the rising stars of Starship Entertainment subsidiary, IVE.

With IVE’s first full album titled I Have IVE (I Have IVE) due to be released on April 10, Kakao said the partnership will support global music distribution, local marketing, and promotion of the album in North America as well as the group’s pre-release track. kits will be released on March 27th.

Kakao said the partnership will allow it to expand its music distribution network in the US and “enhance its position in the global market”.

According to the press release, since their debut in December 2021, IVE has become “the power group of K-pop”, with consecutive hits like ELEVEN, LOVE Diving, and After LIKE.

Kakao says that these three singles have sold more than three million copies in total, and in just two years since the group’s debut, IVE has won 74 Korean and international music awards.

The group’s global activities began with the release of the Japanese version of LOVE Diving last year in addition to the concerts in Japan. With the release of this first full-length album, Kakao says that they now plan to expand the group’s global reach, with a primary focus on North America.

Following IVE’s North American debut, Kakao Entertainment said it will continue to “support the overseas career growth of artists while accelerating the global expansion of its music business.” .

In addition to Starship Entertainment, Kakao Entertainment owns many other brands including IST Entertainment, Antenna, and EDAM.

With Kakao Entertainment America at the center of its operations, the company said it now plans to “implement a comprehensive management system to support artists’ overseas tours, promotions and album releases. Partnering with leading global entertainment companies and seeking diverse partnerships to expand its music distribution and investment business.”

Kakao also said it will “pursue synergies across its vast IP value chain to connect music, story and media businesses with the partnership of Tapas Entertainment, its Northern subsidiary. America in the realm of stories”.

Kakao said the goal is to “expand the company’s influence as a global entertainment company that represents K culture and strengthen the company’s presence and position in the global market.” .

“This partnership is important to us. By strengthening our ability to produce and distribute music and artists in North America, we aim to increase the global competitiveness of Kakao Entertainment’s music business.”

Joseph Chang, Kakao Entertainment America

Joseph Chang, Director of Kakao Entertainment America, said: “We are excited to begin IVE’s global journey with Columbia Records, a company with a long history in pop music.

“This partnership is important to us. By strengthening our ability to produce and distribute music and artists in North America, we aim to increase the global competitiveness of Kakao Entertainment’s music business.”Global Music Business